Name :Syeda Nida Tanveer

MBA 2 Year , 3rd semester

Roll no. 133
Guidance of Dr.Ruksana

Project topic : Financial performance of Indian public banks

Banks in India have played an important role in the country's socio-economic progress
since independence. In India, the banking sector is dominant, as it accounts more than half of
the financial sector's assets. Indian banks have been undergoing an exciting period of rapid
change as a result of financial sector reforms that are being implemented in stages. The banking
sector is the lifeblood of any modern economy. It is one of the significant financial pillars of the
financial sector, and it is essential for  functioning of an economy. It is extremely important for a
country's economic development that trade, industry, and agriculture financing requirements are
met with greater commitment and responsibility. Thus, a country's development is integrally
linked with the development of banking. Banks are to be regarded as  rather than money dealers
in a modern economy. They play an important role in deposit mobilisation and credit distribution
to various sectors of the economy. The primary goal of this research is to assess the financial
performance of Indian public banks using State Bank of India, Bank of Baroda, and Punjab
National Bank as examples. The performance of these banks has been assessed using data
available for the period 2017-22. The CAMEL model and the ratio analysis method are used. It
has been discovered that these banks perform below industry standards in a few para. Within the
sample, Bank of Baroda is performing better.

Literature review:

In the literature reviews, the research papers published during 2015-2022 is reviewed. There is
ample of research papers available on the topic, however, due to space constraints and time only
5 have been included. These research papers wire collected from online sources such as Google
Scholar. The linding of the review in as follows

1. Balaji and Praveen Kumar (2016) analyzed the financial performance of selected public
and private sector banks in India. This research covers a period of five years Le from
financial year 2011-2012 to 2015-2016. It is conclud ed thatpublic sector banks must
 redefine their strategies by considering their strengths and weakness and the type of
markets they are operating

2. Moreshwari, Rajesh and Narayana (2016) evaluate the performance of banking sector to
know the risk- return factors as well as factors affecting the performance of banks. CAMEL
model is applied to measures the performance of banks from each important parameter.

3. Jignasha and chetan (2021) studied Financial Performance analysis of Selected Public
Sector Bank (State Bank of India, Punjab National Bank, Bank of Baroda and Bank of India)
during the Periods of 9 Financial year (2011 to 2019) with the help of ratio analysis.

4. Vijayalakshmi and Jahnavy (2021) Analyze the performance of selected banks (HDFC bank
and Bank of Baroda) by using CAMEL ratio Le Capital adequacy, Asset quality,
Management, Earnings and Liquidity. Last 5 years are taken for this study Le, 2015 to
2020.

5. Divyang, Samir, Ravina and Devyesh (2021) The financial performance of public and
private banks by using net profit, assets, liabilities, income, expense, margin ratio and
return on equity ratio from 2015 to 2019. They concluded that the private banks performed
better than public banks.

6. Deepa and Shambhavi (2022) analyze the financial performance of public sector banks
and private sector banks by calculating and comparing various ratios of selected banks
Three public banks (Bank of Baroda, State Bank of India, Punjab National bank) and three
private banks (HDFC bank, ICICI bank, and AXIS bank) of India which covers the period of
four years from 2016-2017 to 2019-2020. Private sector banks are better than public
sector banks based on the parameters like capital adequacy, NPA's, positive returns on
equity, high returns on assets
Research methodologies :
The respective institution’s balance sheets are being analysed, and data is being collected. This
information is then used for ratio and growth analysis to evaluate the individual and overall
performance of selected Indian public banks.

Need of study :

Scope of study :
The project is limited to Indian public banks. The research is entirely based on secondary data
published in the respective bank profiles. The performance of the selected Indian public bank is
evaluated for the period 2017-22.

Research objectives:

The following are the study's objectives:

. to learn about the Indian banking system

. To learn more about the Indian Public Banks chosen for the study

. To evaluate the financial performance of selected public banks using

CAMEL model (Capital adequacy, Asset quality, Management quality, Earnings, and Liquidity )

. To compare banks and their 5-year performance

. To Evaluate bank’s financial position

Data Sources:
The data collection is going to be through secondary sources over a period of five years i.e. from
2017-18 to 2021-22. More precisely it can be said that the data is collected from the profit & loss
a/c and balance sheets published in respective bank profiles.

Sample Size:
The project report is being prepared on assessing the performance of selected Indian public
banks namely

1. State Bank of India (SBI)

2. Bank of Baroda (BOB)

3. Punjab National Bank (PNB)

Tools and Tests:

The performance of banks is being tested by using the selected financial parameters / ratios are
commonly used to evaluate a bank's performance and financial position

. Capital Adequacy Ratio (CAR) -CapitalReserves/Total Assets

. Deposit -to asset ratio (DAR)- total Deposits/ Total Assets

. Loan-to-Deposit Ratio (LDR) Total Loans/ Total Deposits

. Loan-to-Asset Ratio (LAR) Total Loans/ Total Assets

. Expense-to-Income Ratio (EIR) Total Expenditure/ Total Income

Study’s limitations:
The study's limitations are as follows:
1.The information was obtained from a secondary source.

2.The study's time frame is restricted. 

3.The study only calculated the ratio and growth analysis to Investigate the performance of
banks.

4.The study only uses data from the previous five years and few   selected Indian public banks.

Conclusions :